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Explain the difference between EBITDA, NON GAAP Net Income and Cashflow from Operating Activities? Why they...

Explain the difference between EBITDA, NON GAAP Net Income and Cashflow from Operating Activities? Why they are important for management and investors?

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Answer #1

EBITDA means earnings before interest, tax, depreciation & amortization.

Generally non GAAP net income includes Earnings before interest and taxes, Earnings before interest, taxes, depreciation and amortization, adjusted revenues, free cash flows, core earnings and fund from operations.

Cash flow from operating activities explains the sources and uses of cash from on going regular business activities in a given period.

They are important for management & investors to know the financial position of the company.

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